African oil firm Seplat has launched a £300million bid to fund its expansion by launching on the London and Nigerian stock exchanges.
The Nigerian-focused firm, which has upwards of 110million barrels of oil and 663billion cubic feet of gas reserves, is looking for the dual listing to raise money to fund new oil acquisitions.
The move would see the company, which has three operating licences in the Niger Delta, become the first Nigerian firm to have its ordinary shares listed in London and Nigeria simultaneously.
“Since we commenced operations in 2010, we have increased oil production and reserves year-on-year,” said Seplat chairman Bryant Orjiako.
“we have grown our revenues and our net profit each year. Our target is to grow gross operated production of oil and condensate to 85,000 barrels per day by the end of 2016, with at least 100% annual reserves replacement from our existing assets.
“The global offer proceeds will allow us to further implement our business strategy, which includes acquiring new assets. Seplat has a disciplined approach to acquiring new onshore and shallow water assets in the Niger Delta, which will be strictly adhered to.
“We will be proud to be the first dual-listed Nigerian company to have its ordinary shares listed on the LSE and NSE simultaneously.
The company, which is part-owned by French group Maurel and Prom and Swiss traders Mercuria, said it aimed to bring at least one new field a year into production, with the funds from the listing help acquire new prospects – either outright or through farm-ins – and pay down current debts.
Seplat saw profits rise last year to more than £288million, up 45% on the previous year.